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WSS makes things easier for Suez customers with help of special team

WILHELMSEN Ships Service (WSS) has established a dedicated local transit team, based in Alexandria, to help its customers negotiate not just the Suez Canal, but also its complex rebate system.

The new office is staffed 24/7 by local agents who intimately understand both customer requirements and the workings of the Suez Canal Authority (SCA), a company statement said.

The canal expansion opened in August last year, cutting vessel waiting time from 11 to 3 hours and potentially doubling the number of daily transits.

In an effort to encourage shippers to choose its route over alternatives, SCA has created a rebate system capable of greatly reducing vessel toll fees - if all application criteria are satisfied.

"This is a great scheme, with huge potential benefits," said WSS product manager Steffen Langlete.

"But it can be complex, time-consuming and confusing to understand. SCA has strict deadlines with regard to submitting applications and the confirmation of rebates, while the documentation required is extensive.

"If shippers forget to apply at the right time, or fail to submit the correct papers, their rebates may not be forthcoming and, in an era of tight margins and pressure on costs, this can be a heavy price to pay."

The SCA system is stringent, yet generous. Dependant on an array of route and cargo variables, toll reductions typically range between five and 35 per cent.

But the biggest savings come for container vessels trading between ports south of Norfolk, Virginia, and ports lying to the east of Port Kelang, obtaining rebates of up to 65 per cent.

Rebates are calculated on a case-by-case basis and are also subject to factors such as freight rates, hire rates and bunker prices.

For example, among the numerous rebates WSS has secured for its customers since the expanded canal opened, a 38,000 DWT general cargo ship recently received a US$50,000 discount on its original $180,000 transit fee.

Loading in Huelva, Spain and discharging in Fangscheng, China, this considerable rebate could have, and often does go, unclaimed by customers unable or unaware of the paperwork and timings required by the SCA.

Applications must be received by SCA 48 hours prior to a vessel's departure from its most recent port of origin before entering the canal, while a range of original documents are required post-transit.